EX-99 2 l37122exv99.htm EX-99 EX-99
Exhibit 99
Page 1
GORMAN-RUPP REPORTS 2009 SECOND QUARTER EARNINGS
Mansfield, Ohio — July 23, 2009 — The Gorman-Rupp Company (NYSE Amex: GRC) reports net sales and earnings for the second quarter and six months ended June 30, 2009.
Net sales were $68,345,000 for the second quarter ended June 30, 2009, 18.7% lower than the $84,031,000 during the same period in 2008. Net income declined from $7,895,000 in the second quarter 2008 to $4,867,000 in the second quarter 2009, or 38.4%. Earnings per share decreased from $0.47 to $0.29 for the comparable periods.
Net sales for the six months ended June 30, 2009 totaled $139,943,000, down 15.4% from net sales of $165,465,000 during the same period in 2008. Net income declined 37.7% from $15,047,000 in the first six months of 2008 to $9,373,000 in the first six months of 2009. Earnings per share decreased from $0.90 to $0.56 for the comparable periods.
As in the previous two quarters, the global economic downturn continues to have a negative impact on the Company’s business compared to its record results in the first half of last year. The decline in sales for the quarter was across most of the markets the Company serves, with the largest declines in the construction and rental markets, the fire protection market and the power generation market.
The decline in earnings for the quarter principally reflects decreased operating leverage on the lower volume of operations, and increased pension and healthcare expenses of $0.10 per share. Offsetting these increased expenses was a decrease in LIFO expense of $0.08 per share, of which one-half was due to the partial liquidation of LIFO quantities during the second quarter 2009 as a result of lower sales levels.
The Company’s backlog of orders was $82.9 million at June 30, 2009 compared to $119.6 million a year ago and $107.8 million at December 31, 2008, with the largest decline in the power generation market. The continued economic uncertainty facing most companies and municipalities has caused some orders to be deferred.
The Company’s balance sheet continues to be strong through this period of reduced sales and earnings. The Company generated $27.1 million in operating cash flow during the first six months of 2009, primarily due to net income and to lower inventory and accounts receivable balances. Capital expenditures totaling $42.9 million for the previously announced consolidation of the Mansfield, Ohio facilities have been incurred as of June 30, 2009, of which $19.6 million has been incurred in 2009. During the quarter $11.2 million was borrowed under an unsecured loan agreement to partially finance this construction project which is expected to be completed by the end of 2009.
The Company regularly evaluates its cost structure to ensure that it is appropriately positioned to respond to changing market conditions. In 2008, and continuing in 2009, the Company initiated and expanded several initiatives to help adjust costs to current operating levels. During the second quarter 2009, production plans were further realigned to match current demand and additional compensation reductions were put in place for salary and hourly employees and some workforce reductions occurred at

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Exhibit 99
Page 2
locations where appropriate.
Jeffrey S. Gorman, President and CEO said, “Our operational and financial initiatives in response to the global economic weakness will allow the Company to continue to withstand the current downturn and better compete and grow when the economy recovers. We have seen less impact from Federal stimulus funding than previously anticipated due to the relatively small allocation of these funds to water, wastewater and similar infrastructure projects to date.”
Released by David P. Emmens, Corporate Secretary, Telephone (419) 755-1477.
For additional information contact Wayne L. Knabel, Chief Financial Officer, Telephone (419) 755-1397.

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Exhibit 99
Page 3
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Statements of Income (unaudited)
(in thousands of dollars, except per share data)
                                 
    Three Months Ended June 30,     Six Months Ended June 30,  
    2009     2008     2009     2008  
 
                               
Net sales
  $ 68,345     $ 84,031     $ 139,943     $ 165,465  
Cost of products sold
    52,555       63,625       108,808       125,215  
 
                       
 
                               
Gross profit
    15,790       20,406       31,135       40,250  
 
                               
Selling, general and administrative expenses
    8,790       9,356       17,778       18,855  
 
                       
 
                               
Operating income
    7,000       11,050       13,357       21,395  
 
                               
Other income (expense) — net
    202       883       713       1,426  
 
                       
 
                               
Income before income taxes
    7,202       11,933       14,070       22,821  
Income taxes
    2,335       4,038       4,697       7,774  
 
                       
 
                               
Net income
  $ 4,867     $ 7,895     $ 9,373     $ 15,047  
 
                       
 
                               
Basic and diluted earnings per share
  $ 0.29     $ 0.47     $ 0.56     $ 0.90  
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands of dollars)
                 
    Unaudited        
    June 30,     December 31,  
    2009     2008  
Assets
               
Cash and short-term investments
  $ 42,709     $ 23,793  
Accounts receivable — net
    41,307       48,200  
Inventories
    46,499       56,881  
Deferred income taxes and other current assets
    2,364       5,392  
 
           
 
               
Total current assets
    132,879       134,266  
 
               
Property, plant and equipment — net
    99,819       80,406  
 
               
Deferred income taxes and other assets
    16,802       16,866  
 
           
 
               
Total assets
  $ 249,500     $ 231,538  
 
           
 
               
Liabilities and shareholders’ equity
               
 
               
Accounts payable
  $ 9,534     $ 15,878  
Short-term debt
    16,834        
Accrued liabilities and expenses
    20,711       19,691  
 
           
 
               
Total current liabilities
    47,079       35,569  
 
               
Deferred and other long-term income taxes
    1,324       1,322  
Retirement benefits
    9,731       11,421  
Postretirement benefits
    24,639       24,020  
 
               
The Gorman-Rupp Company shareholders’ equity
    166,060       158,588  
Noncontrolling interest
    667       618  
 
           
 
               
Total shareholders’ equity
    166,727       159,206  
 
           
 
               
Total liabilities and shareholders’ equity
  $ 249,500     $ 231,538  
 
           
 
               
Shares outstanding
    16,707,535       16,707,535  

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